Donald Trump’s return to the White House marks a new chapter in U.S. politics, with significant implications for various employment and hiring practices. A key area of focus is the H-1B visa program, which allows U.S. companies to tap highly skilled talent from overseas.
During his first term as president, Trump was highly critical of the H-1B program, arguing that it was being misused to replace skilled U.S. workers with cheaper talent from overseas. And though his administration sought to limit the H-1B program, most of those attempts were either overturned by courts or delayed until his term ended. However, Trump’s H-1B criticisms have now turned into tangible legislation in his second term.
On September 19, 2025, President Trump signed a proclamation that restricts certain nonimmigrant workers from entering U.S. occupations via the H-1B visa program — unless a $100,000 fee is paid. The move comes as a direct result of the Trump administration’s belief that the H-1B statute has been “deliberately exploited to replace, rather than supplement, American workers.”
Changes to the H-1B program could fundamentally alter how organizations attract and manage their employees, affecting thousands of U.S. tech companies. As U.S. employers and current H-1B visa holders alike panic following the proclamation news, the tech industry is left wondering what this means for its future.
What Is the H-1B Visa Program?
The H-1B visa program enables U.S. employers to hire highly skilled foreign professionals in “specialty occupations,” such as technology, healthcare and finance. The visa allows workers to live and work in the United States for a period of three years, with the possibility of extending the stay up to a total of six years.
Tech companies are among the primary users of the H-1B program, relying on it to fill positions in software development, engineering and data science. The program helps businesses stay competitive and innovative, especially in cutting-edge industries like artificial intelligence and biotechnology, where demand for highly skilled talent far outstrips the domestic supply.
But the program is also highly competitive. The U.S. Citizenship and Immigration Services (USCIS) has received more than 470,000 eligible applications for the 2025 fiscal year, far surpassing the annual cap of 65,000 visas (plus an additional 20,000 for those with advanced degrees from a U.S. university).
And while the H-1B program has certainly helped address U.S. labor shortages, it has also faced a lot of backlash. Critics argue that, instead of bringing the world’s “best and brightest” to work alongside Americans, the system appears to be bringing in cheaper foreign labor to replace American workers outright.
H-1B workers are required to have a bachelor’s degree or higher in their respective field, and they are categorized into one of four wage tiers based on their level of experience. At least 60 percent of H-1B workers are hired at the lowest two tiers, which pay 17 to 34 percent below the local median, according to a 2020 analysis by the Economic Policy Institute. A report by the National Foundation for American Policy, meanwhile, highlights several studies showing H-1B workers’ salaries, which average $118,000, are equal to those of U.S. workers.
Trump’s Record on H-1B Visas
During his 2016 presidential campaign, Trump criticized the H-1B program for being “unfair,” claiming it undercut American workers with cheap labor from overseas and stating that “we should end it.” At that time, Disney was under fire for laying off 250 IT workers and replacing them with H-1B workers employed by HCL, an outsourcing firm. The laid-off workers were forced to train their replacements, who were earning half of their salary and no benefits.
Throughout Trump’s first term, his administration made several attempts to limit the H-1B visa program. Meanwhile, H-1B petition denials skyrocketed. After years in the single digits, the denial rate spiked to 24 percent in 2018 and 21 percent in 2019, according to USCIS data.
In June 2020, the Trump administration took things a step further by suspending the issuance of new H-1B visas amid the economic downturn caused by Covid-19 lockdowns, arguing that U.S. workers should not face excessive competition when job openings are in limited supply.
Later that year, the Department of Labor raised the minimum wage for H-1B workers, claiming employers were using the program to replace U.S. workers with cheaper foreign talent. At the same time, the Department of Homeland Security narrowed the definition of specialty occupations, requiring recipients to hold a degree directly related to their specific field. It also cracked down on consulting firms that assign H-1B employees to work with their clients. The ruling shifted the administrative burdens of the H-1B process onto the clients and limited workers’ residency to one year.
Both of these rules were struck down by a federal judge after two months. Other last-minute efforts to raise H-1B wages and institute a selection process prioritizing higher wage jobs were delayed until Trump left office.
Nevertheless, Trump’s intended changes to the H-1B visa program came to fruition in his second term. In September 2025, he signed a proclamation suspending the entry of certain U.S. nonimmigrant workers through the H-1B program, unless a worker’s petition was accompanied by a $100,000 payment — a stark increase from the previously instated $2,000 to $5,000 fee per application. The new $100,000 fee aims to “curb abuses that displace U.S. workers and undermine national security,” as well as prevent artificially suppressed wages and job competition as a result of the H-1B program, particularly in the IT industry.
Trump’s Everchanging Tone on H-1B Visas
Toward the beginning of his second presidential term, Trump appeared to have a more supportive stance on H-1B visas.
“I have many H-1B visas on my properties,” he told the New York Post. “I’ve been a believer in H-1B. I have used it many times. It’s a great program.”
According to the New York Times, Trump’s companies have “only sparingly” used the H-1B program, but they have extensively used the H-2 visa programs for unskilled workers like cooks and housekeepers.
Even so, Trump’s change of tune in late 2024 sparked an internal debate amongst his closest advisors — most notably between longtime Trump ally Steve Bannon, who believes H-1B workers are taking away jobs from American workers, and tech mogul Elon Musk, a relatively new addition to Trump’s orbit who donated some $277 million to him and other GOP candidates in 2024. Musk, who led the U.S. Department of Government Efficiency under the Trump administration until May 2025, came to the United States on an H-1B visa and uses the program to hire foreign workers at his own companies. In 2024, he said the H-1B program is needed to offset the “dire shortage of extremely talented and motivated engineers” in the United States, adding that he was willing to “go to war on this issue.”
David Sacks, a former PayPal executive who was named Trump’s “White House AI and Crypto Czar”, is also an avid supporter of the new president, hosting a $12 million fundraiser for him in June 2024. Later that month, Trump made an appearance on the All-In podcast, which Sacks co-hosts. When asked what he would do to bring more tech talent to the United States, Trump said international students who graduate from a U.S. college should automatically get a green card with their diploma.
In a follow-up statement to Reuters, the Trump campaign in 2024 said only “the most skilled graduates who can make significant contributions to America” would be allowed to stay in the United States, and only after the “the most aggressive vetting process in U.S. history.”
Future Predictions for Trump’s Second Term
With Trump’s signing of the September 2025 H-1B proclamation, this raises questions of what related legislation is to come next in his presidency.
Throughout his second term, Trump’s administration could also reintroduce some of the previous measures from his first term, such as raising the minimum wage or narrowing the definition of “specialty occupations.”
Becki Young, a partner at immigration law firm Grossman, Young and Hammond, also identified several potential initiatives prescribed in Project 2025, a 922-page policy wishlist drafted by the The Heritage Foundation, a conservative think tank. While Trump has repeatedly distanced himself from Project 2025, the Heritage Foundation has close ties with several former members of his advisory team and is backed by several pro-Trump organizations.
Eliminating Two Lowest Wage Tiers
Similar to Trump’s earlier efforts to raise the minimum wage for H-1B employees at each experience level and to prioritize H-1B petitions for workers earning higher salaries, Project 2025 suggests eliminating the lower two pay bands for “entry-level” and “qualified” workers, leaving only the higher two pay bands for “experienced” and “fully competent” employees.
“Even if you hire an entry-level person, you would have to pay them an experienced level wage,” Young said.
Instituting Visa Sanctions Against Recalcitrant Countries
A recalcitrant country is a country that refuses to repatriate a foreign national that has been deported from the United States. Project 2025 suggests banning all visas, including H-1B visas, to residents of any country that will not accept their return. India and China, the top two sources of H-1B workers, are both considered recalcitrant countries.
“If Chinese and Indian citizens were not able to get H-1B visas, that would obviously have a huge impact on the program,” Young said.
Eliminating Visas to Chinese Students
Project 2025 suggests Immigration and Customs Enforcement partner with the State Department to “eliminate or significantly reduce” the number of visas issued to foreign students from “enemy nations.” Elsewhere in the document, China is labeled an enemy of the United States. By not allowing Chinese students to attend school in the United States, the government would be drastically reducing the pipeline of future H-1B workers, as China is the second-largest source of H-1B workers. With that said, the White House did state 600,000 student visas will be issued through 2027 to allow Chinese students to study in the United States.
Ending Spousal Work Privileges
Spouses and unmarried children of H-1B employees are allowed to join the H-1B employee in the U.S. under an H-4 visa, meaning they aren’t allowed to work in the country unless they explicitly receive authorization from the USCIS. In May 2015, however, the USCIS extended employment eligibility to the spouses of H-1B workers who are in the process of becoming a permanent resident. The Trump administration proposed rescinding this eligibility in his first term, and Young suspects his administration will target the program again in his second term.
Increased H-1B Oversight and Scrutiny
Overall, Young expects the incoming Trump administration will continue to apply more scrutiny to H-1B petitions. Reflecting on Trump’s first term, she recalled instances where the government requested evidence proving that a bachelor’s degree was necessary for advanced roles, like a nuclear physicist and a lawyer.
“I expect that it’s going to cost more, it’s going to take longer and it’s going to be more difficult [to navigate the H-1B approval process],” Young said.
Donald Trump’s H-1B Visa Policy Developments
Below are some of the most significant developments and policy changes concerning the H-1B visa program during the presidency of Donald Trump, highlighting his administration’s focus on prioritizing American workers.
Proclamation of $100,000 H-1B Visa Fee (September 2025)
President Donald Trump signed a proclamation imposing a $100,000 fee on companies filing for certain new H-1B visas, effective September 21, 2025. The $100,000 payment reflects a dramatic increase from previous H-1B application fees that were typically between $2,000 and $5,000. The administration’s stated rationale was to protect American jobs and curb perceived abuses of the H-1B program.
This proclamation, alongside the proposal of a related bill known as the HIRE Act, led to widespread confusion and concern among H-1B visa holders and U.S. employers, with some companies like Microsoft and Amazon reportedly advising employees to avoid international travel to prevent being stranded.
Suspension of New H-1B Visas During Covid-19 Pandemic (June 2020)
In June 2020, amidst the economic fallout from the Covid-19 pandemic, the Trump administration issued a proclamation that temporarily suspended the issuance of new H-1B, L-1, J-1 and other non-immigrant visas. The stated purpose of the ban, which lasted until the end of 2020, was to protect American jobs for citizens who had lost their previous job due to the economic crisis.
This suspension, implemented by the White House, was criticized by businesses and universities who rely on foreign talent for specific roles, and it primarily impacted individuals outside the United States who were awaiting a visa to enter the country.
Increased H-1B Denial Rates Under the Trump Administration (2018)
During his first term, the Trump administration took steps to make it more difficult for companies to hire foreign workers on H-1B visas, leading to a 15 percent peak in denial rates. The denial rate for new applications reached 24 percent in fiscal year 2018, a significant jump in comparison to H-1B denials during the Obama presidency. This was a result of stricter interpretations of “specialty occupations” and other administrative changes aimed at curbing the use of the H-1B program, particularly for third-party placements. This shift in policy created considerable uncertainty for both employers and prospective visa holders, as they faced a higher probability of their applications being rejected.
Trump’s Initial Criticism of H-1B Visas (2016)
During his 2016 presidential campaign, Donald Trump expressed strong criticism of the H-1B visa program, calling it a system that undercuts American workers. Trump stated his commitment to ending what he called “rampant, widespread H-1B abuse” and instituting a strict “hire American workers first” policy for all visa and immigration programs.
